Are you interested to be a Micro or Small Entrepreneur in a hassle free credit system? Worried about collateral security? Here is the best solution to make your dreams come true as an entrepreneur! Bank of Baroda (BOB) offers collateral free, affordable credit to their customers who are in the business of Micro and small enterprises through Pradhan Mantri Mudra Yojana or PMMY scheme. BOB PMMY scheme is supported by Government of India to extend affordable credit to micro and small enterprises across the country where BOB has serviceable branches.

Bank of Baroda (BOB) PMMY Bank Loan Scheme

PMMY bank loans or Mudra loans caters to find and support entrepreneur skills in you. It's a financial system developed to bring forward enthusiastic, skilled entrepreneurs into the formal financial system, that claims policy to “fund the unfunded”. Loans under PMMY scheme are available to non-farm micro or small enterprises engaged in income generation through manufacturing, trading and services. Enterprises involved in allied agricultural activities can also apply for Mudra loans.

Benefits of BOB PMMY Collateral Free Bank Loan

The BOB PMMY loan scheme offers credit facilities to micro and small enterprises engaged in income generation.

One of the key benefits of a BOB PMMY loan is that borrowers are not required to provide security or collateral.

BOB PMMY does not charge you any processing fee.

The credit facilities extended under the BOB PMMY can be for any type of fund or non-fund based requirements. Hence, borrowers can use the BOB PMMY loan scheme for a variety of purposes.

The credit from BOB PMMY loans can be used for term loans and overdraft facilities, or to apply for letters of credit and bank guarantees.

There is no minimum loan amount for BOB PMMY loans.

Features of BOB PMMY Collateral Free Bank Loan

There are three types of Mudra loans depending on the loan amount:

Shishu: Loans sanctioned under the BOB PMMY scheme up to Rs. 50,000/-

Kishore: Loans sanctioned under the BOB PMMY scheme from Rs. 50,001 up to Rs. 5.00 lakhs

As per the BOB PMMY scheme, the Mudra loan can not only be offered to enterprises in the non-farm sector but also can include those engaged in allied agricultural activities, such as horticulture and fisheries.

The interest rate on BOB PMMY loans is determined by the Marginal Cost of Lending Rate or MCLR, which is calculated according to the RBI guidelines.

Eligibility of BOB PMMY Collateral Free Bank Loan

All Non farm enterprises that comes under Micro and Small Enterprises segment who engaged in income generating activities including manufacturing, trading, services, and allied agriculture activities whose credit needs are up to Rs. 10.00 lakhs.

Interest Rates and Charges nof BOB PMMY Collateral Free Bank Loan

BOB PMMY loan interest rates begin at 9.65% but calculated on the basis of MCLR